Federal National Mortgage Association Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
On Friday, Federal National Mortgage Association stock price gained an impressive 5.63%
(Updated on May 17, 2024)
The Federal National Mortgage Association stock price gained 5.63% on the last trading day (Friday, 17th May 2024), rising from $6.75 to $7.13. During the last trading day the stock fluctuated 0.706% from a day low at $7.08 to a day high of $7.13. The price has risen in 5 of the last 10 days and is up by 8.19% over the past 2 weeks. Volume fell on the last day by -320 thousand shares and in total, 1 thousand shares were bought and sold for approximately $7.84 thousand. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the middle of a wide and weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 7.84% during the next 3 months and, with a 90% probability hold a price between $6.66 and $8.05 at the end of this 3-month period.
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FNMFN Signals & Forecast
The Federal National Mortgage Association stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $6.86 and $6.67. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, May 13, 2024, and so far it has risen 9.02%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may not be. The very low volume increases the risk and reduces the other technical signals issued.
Support, Risk & Stop-loss for Federal National Mortgage Association stock
On the downside, the stock finds support just below today's level from accumulated volume at $6.75 and $6.59. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Federal National Mortgage Association finds support just below today's level at $6.75. If this is broken, then the next support from accumulated volume will be at $6.59 and $6.50.
This stock has average movements during the day, but be aware of low or falling volume as this increases the risk. During the last day, the stock moved $0.0500 between high and low, or 0.706%. For the last week the stock has had daily average volatility of 0.97%.
Our recommended stop-loss: $6.89 (-3.34%) (This stock has medium daily movements and this gives medium risk. There is a buy signal from a pivot bottom found 4 days ago.)
Trading Expectations (FNMFN) For The Upcoming Trading Day Of Monday 20th
For the upcoming trading day on Monday, 20th we expect Federal National Mortgage Association to open at $7.11, and during the day (based on 14 day Average True Range), to move between $6.96 and $7.30, which gives a possible trading interval of +/-$0.166 (+/-2.33%) up or down from last closing price. If Federal National Mortgage Association takes out the full calculated possible swing range there will be an estimated 4.67% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $6.75, some $0.380 (5.33%) from the current price of $7.13, our system finds the risk reward attractive.
Is Federal National Mortgage Association stock A Buy?
Federal National Mortgage Association holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Strong Buy candidate.
Current score: 5.849 Strong Buy Candidate Upgraded
Predicted Opening Price for Federal National Mortgage Association of Monday, May 20, 2024
| Fair opening price May 20, 2024 | Current price |
|---|---|
| $7.11 ( 0.234%) | $7.13 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for FNMFN
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 7.16 | 0.468 % | |
| R2 | 7.14 | 0.200 % | ||
| R1 | 7.13 | 0.0341 % | ||
| Current price: | 7.13 | |||
| Support | S1 | 7.09 | -0.502 % | |
| S2 | 7.08 | -0.667 % | ||
| S3 | 7.06 | -0.94 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 0 | . | ||
| Current price | 7.13 | |||
| Support | S1 | 6.75 | -5.33% | |
| S2 | 6.59 | -7.57% | ||
| S3 | 6.50 | -8.84% |
FAQ
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